Shri Ganesh Auto Parts Centre vs. Assessment Unit, National Faceless Appeal Centre (NFAC), New Delhi

Parties Involved

Facts Summary

The assessee filed a return of income of Rs. 32,23,609/- which was processed under section 143(1) of the Income Tax Act, 1961. The Assessing Officer issued notices under sections 147, 148A, 148, and 142(1) of the Act, and a show cause notice dated 13.05.2023. The assessee did not respond to these notices. The Assessing Officer made an addition of Rs. 25,92,61,800/- under section 68 r.w.s. 115BBE of the Act. The assessee filed an appeal against the order dated 19.05.2023, which was dismissed by the Commissioner of Income Tax/NFAC as barred by limitation. The assessee then filed an appeal before the Income Tax Appellate Tribunal.…

Legal Issues

• 1. The order passed by the Ld. CIT(A) u/s 250 is bad in law, arbitrary and against the principles of natural justice.
• 2. Addition of ₹25,92,61,800/-: That the Ld. CIT(A) has erred in confirming the addition of ₹25,92,61,800/-made by the Ld. AO on account of alleged unexplained cash deposits.
• 3. Incorrect Facts Considered: That the authorities below failed to appreciate that the actual cash deposits were 6,14,40,000/- as per bank statement and bank certificate, and not ₹25,92,61,800/-.
• 4. Books of Account Ignored: That the addition has been made without rejecting the books of account as required under section 145 of the Act.
• 5. Audited Accounts Ignored: That the books were duly audited under section 44AB and no defect was pointed out in audit report (Form 3CB & 3CD).
• 6. Business Receipts Treated as Unexplained Income: That the cash deposits represent regular business sales duly recorded in books and reflected in the Trading Account and P&L Account.

Judgment Outcome

Decided in favour of Assessee.

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